Q5

Find the internal rate of return (IRR) for the project in question 3. Enter the IRR as a whole number

Q6

It is desired to repay a loan of $20,000 in 12 equal annual installments, where the loan earns interest at the rate of 10% per year. How much should be paid each year?

Enter your answer as a whole number

Q7

The US EPA has determined that cleaning up the local watershed so it will meet healthy water standards will cost $300 million. They support their claim for the need to do this project by saying that the economic value of the healthy water to the citizens in the area is $15 million dollars per year in lower health costs, recreation, and quality of life. These benefits are expected to continue for 50 years. The opportunity cost of government money is normally the current rate of treasury bills which is 3%/year. Using Benefit/Cost Analysis determine if this use of government money makes sense. Enter the Benefit/cost ratio to 3 decimal places

Q8

Compute the present value of $10,000 to be received in 30 years, if the interest of 8% per year is compounded annually.

Enter your answer as a whole number